ENTREPRENEURIAL MIND

LEC / PROF. F. ANDRES

PRELIMS

TOPIC OUTLINE • Cecilio Kwok Pedro – Lamoiyan

I. Entrepreneurship
• Alfredo M. Yao – Zest-O
A. Evolution of Entrepreneurship
B. Brief History of Entrepreneurship • Gregorio G. Sanchez, Jr. – LactoPAFI
C. Entrepreneurship: An Integrated Definition • Joe Magsaysay – Potato Corner
D. Impact of Entrepreneurial Ventures • Milagros, Clarita and Doris Leelin - Goldilocks
E. Research Themes and Aspects of Entrepreneurial
Ventures
F. Theory Development of Entrepreneurship BRIEF HISTORY OF ENTREPRENEURSHIP
G. Approaches to the Theory of Entrepreneurship • Earliest period – Marco Polo as a go-between
II. Entrepreneurial Mindset in Individuals
• Middle ages – priests
A. Characteristics of the Entrepreneurial Mindset
B. Entrepreneurial Ethics • 17th century – John Law
C. Strategies in Achieving an Entrepreneurial Venture • 20th century
III. Corporate Entrepreneur • 21st century
A. Organizations & Fundamentals of Management
B. Supply Chain
o Tech-savvy
C. Functional Areas of Management o Global Citizens
D. Corporate Entrepreneurship o Innovative
E. The 5 Critical Steps of a Corporate Entrepreneurial
Strategy
Notable Economists
ENTREPRENEURSHIP • Richard Cantillon (1725), French economist:
EVOLUTION OF ENTREPRENEURSHIP “Entrepreneurs assume and organize the risk of a
• Entrepreneur is derived from the French entreprendre, business in return for profits.”
meaning “to undertake.” • Jean Baptiste Say (1803), French economist; the Law of
• The entrepreneur is one who undertakes to organize, Markets: “Supply creates its own demand.”
manage, and assume the risks of a business. • Joseph Schumpeter (1932), Austrian political
economist; dynamic economic growth known as
Types of Business Risks: “creative destruction.”
• Strategic
Small Business Owners
• Compliance
• Operational • Independently own and operate a small business
• Reputational • Not dominant in their field
• Do not engage in many new or innovative practices
True Entrepreneurs • Simply expect stable sales and profits
• Include those who purchase already established
• Henry Ford – Automobile
businesses as well as franchises
• Louis Francois Cartier – Jewelry
• Coco Chanel – Perfumerie
Entrepreneurs
• Gianni & Donatella Versace – Fashion
• Fred Smith – FedEx • Recognize opportunities where others see chaos,
• Bill Gates – Microsoft contradiction, and confusion.
• Howard Schultz – Starbucks • Aggressive catalysts for change within a marketplace.
• Amancio Ortega – Zara • Break new barriers, challenge the unknown, and create
• Steve Jobs – Apple breakthroughs.
• Andy Grove & Gordon Moore – Intel • Create jobs at a breathtaking pace.
• Larry Page & Sergey Brin – Google • All about innovation, profitability, and growth.
• Mark Zuckerberg – Facebook • Their business is characterized by innovative practices
• Jeff Bezos – Amazon and sustainable growth.
• Henry Sy – SM Malls & Properties, BDO • Their mindset revolutionizes the way business is
• Zobel de Ayalas – Ayala Conglomerate, BPI conducted at every level in every country.
• Lucio Tan – PAL, Fortune Tobacco
• John Gokongwei – Robinsons, URC Summary Description of Entrepreneurship
• George Ty – Federal Land, Metrobank Entrepreneurship (Robert C. Ronstadt)
• Tony Tan Caktiong – Jollibee • The dynamic process of creating incremental wealth.
• Socorro Ramos – National Bookstore • This wealth is created by individuals who assume major
• Edgar Sia – Mang Inasal risks in terms of equity, time, and/or career
• Mariano Que – Mercury Drug commitment to providing value for a product or
• Cresida Tueres – Greenwich Pizza service.

1
 • The product or service itself may or may not be new or
unique but the entrepreneur must somehow infuse
value by securing and allocating the necessary skills
and resources.
ENTREPRENEURSHIP: AN INTEGRATED DEFINITION
• Entrepreneurship is a dynamic process of vision,
change, and creation.
Essential ingredients include:
• The willingness to take calculated risks in terms of time,
equity, or career.
• The ability to formulate an effective venture team.
• The creative skill to marshal resources.
• The fundamental skill of building a solid business plan.
• The vision to recognize opportunity where others see
chaos, contradiction, and confusion
Entrepreneurship
1. Entrepreneurs are only doers but not thinkers
2. Entrepreneurs are born and not made
3. Entrepreneurs are always inventors
4. Entrepreneurs are anti-academic and social misfits
5. Entrepreneurs must fit the “profile”
6. All entrepreneurs need is money
7. All entrepreneurs need is luck
8. Entrepreneurship is unstructured and chaotic
9. Most entrepreneurial initiatives fail
10. Entrepreneurs are extreme risk-takers
Entrepreneurs are critical contributes to economic growth
through their…
IMPACT OF ENTREPRENEURIAL VENTURES
• Entrepreneurship provides job options for those who
see opportunities and those who need a source of
income
• Minority groups are provided an avenue to contribute
to the mainstream market.
• In the U.S., many baby boomers use entrepreneurship
for a second career.
• Entrepreneurs continue to be the answer to any
economic downturn.
• Entrepreneurs enter and expand existing markets,
thereby increasing competition and economic
efficiency.
• Entrepreneurs create entirely new markets by offering
innovative products – new ventures having no direct
competition.
• Large existing firms in mature markets; who have
downsized restructured and reinvented themselves
after becoming more entrepreneurial in the early 2000s
are now thriving.
• The U.S. is the leader in entrepreneurship education at
both the undergraduate and graduate levels.
• Individuals with professional, technological, or business
degrees exhibit the highest entrepreneurial activity
rate.
RESEARCH THEMES AND ASPECTS OF ENTREPRENEURIAL
VENTURES
• Venture financing and other innovative financing
techniques
• Corporate entrepreneurship – entrepreneurial activity
with large organizations.
• Social entrepreneurship – seeking innovative solutions
to world problems.
• Entrepreneurial recognition – examining ways that
entrepreneurs think and act.
• Women and minority entrepreneurs – learning from
the unique obstacles they face and have to overcome.
• The global entrepreneurial movement – World
Economic Forum (WEF) research shows significant
entrepreneurial success (2000-2009) in the following
countries: the U.S., Canada, the U.K., Germany, France,
Sweden, Norway, Israel, China, India, Japan, Australia,
and New Zealand.
• Family businesses have shown a significant impact on
job creation innovation and economic renewal.
• Entrepreneurship education – is the hottest topic in
business and engineering schools throughout the
world, and has expanded to include almost every major
discipline.
THEORY DEVELOPMENT OF ENTREPRENEURSHIP
• A theory of entrepreneurship is a verifiable and
coherent formulation of relationships, or underlying
principles, that either explain entrepreneurship, predict
entrepreneurial activity, or provide normative
guidance.
APPROACHES TO THE THEORY OF ENTREPRENEURSHIP
• Schools of Thought Approach – Theory development
focuses more on the concept of entrepreneurship.
• Process Approach – Theory development focuses more
on the flow of the entrepreneurial process.
Schools of Thought Approach Macro View
Environmental Financial/Capital Displacement
Entrepreneurs are The entrepreneurial The feeling of being out
developed by the venture is viewed from of place or displaced
2
socio-political a financial management and the frustration Entrepreneurial Process Entrepreneurial Intensity
environment: standpoint. arising from such Environmental Identify Innovation An ongoing
colleagues, friends, motivates an individual opportunities opportunity venture
relatives, etc. to be entrepreneurial. Risk-taking
Entrepreneurial Assess and Value creation
Focus is on institutions, individuals acquire Proactiveness
values, and norms. necessary New products,
Organizational resources services
context
Macro View – external factors influence the actions of the Implementation Processes
entrepreneur. Unique business
concept Technologies
Schools of Thought Approach Macro View
Financial/Capital Resources Profits and/or
Venture Stage Financial Focus Decision personal
Start-up or • Seed Capital Proceed or abandon benefits
Acquisition • Venture Capital
Sources Employment,
asset, revenue
Ongoing • Cash Management Maintain, increase, or
growth
• Investments reduce size
• Financial Analysis &
Evaluation Process Approach Integrative
Decline or • Profit Question Sell, retire, or dissolve Inputs Outcomes
Succession • Corporate Buyout operations Entrepreneurial Process Entrepreneurial Intensity
• Succession Activities • Design
Question • Tasks

Schools of Thought Approach Macro View Resources • Processes

Opportunity • Capabilities Value
Types of Displacement Displacement
Tension • Supply Chain Creation
Political Displacement Political regimes, governmental
• Collaborations
regulations and policies p[ush an
individual to entrepreneurial pursuits.
Position • Strategies
Cultural Displacement Discrimination (ethnic background,
religion, race, sex) pushes individuals to
entrepreneurial pursuits. Process Approach Framework or Frameworks
Economic Displacement Economic recession or depression, job School of Thought • Macro view
loss, capital shrinkage, etc., can push • Micro view
individuals to entrepreneurial pursuits. Typology of Entrepreneurs Behavioral
• Psychological
• Characteristics
Schools of Thought Approach Micro View
Entrepreneurial Trait Venture Opportunity Strategic Formation
Decision Processes
Grounded on the study Developing the right Emphasizes the
• Cognition
of successful idea at the right time planning process in
• Metacognition
entrepreneurs and their for the right market successful venture
• Cognitive Adaptability
traits. niche. development.
Venture Typology Frameworks Size
• Microenterprise
Entrepreneurial families Corridor principle: new Leveraging unique
• Small Business
opportunities arise, elements requires an
• Medium-sized
Educational veering away from the interdisciplinary
• Large Venture
development original pursuit. approach.

Growth Rate
Interdisciplinary
• Lifestyle
education lead to new
• Medium Growth
ventures.
• Fast Growth (Gazelle)
Life Cycle Frameworks Stages/Risk Levels
Micro View – the entrepreneur has the ability to control or • Idea Development
direct the outcomes. • Venture Startup
• Venture Growth
• Venture Maturity
Schools of Thought Approach Micro View • Venture Harvest
Strategic Formulation Integrative Frameworks Entrepreneurial Process
Unique Markets Mountain gap strategies. Identifying major market • Environment
segments and interstice markets arising from larger • Entrepreneur
markets. • Resources
Unique People Great chef strategies. The venture is built around the skills • Concept
and talents of one or more individuals. • Context
Unique Products Better widget strategies. Innovations that encompass new Process Frameworks • Integrative Models
or existing markets. • Assessment Models
Unique Water well strategies. The ability to gather or harness • Dynamic Models
Resources special resources (land, labor, capital, raw materials) over
the long term.

Process Approach Integrative

Inputs Outcomes

3
 effectually, and thus why and how a particular
strategy was included in a set of alternative
responses to the decision task
(metacognition).

CHARACTERISTICS OF THE ENTREPRENEURIAL MINDSET

• Determination and perseverance
• Drive to achieve
• Opportunity orientation
• Initiative and responsibility
• Persistent problem solving
• Seeking feedback
• Internal locus of control
• Tolerance for ambiguity
• Calculated risk-taking
• High energy level
• Creativity and innovativeness
• Vision
• Passion
• Independence
• Team building
Key Concepts:
• Entrepreneurship Dealing with Failure: The Grief Recovery Process
o The dynamic process of vision, change, and • Loss Orientation
innovation o Involves focusing on the particular loss to
• Entrepreneur construct an account that explains why the
o Individuals who possess the passion, energy, loss occurred.
and skill to innovate and sustain. • Restoration Orientation
• Entrepreneurial Leadership o Involves both distracting oneself from
o The symbol of business tenacity and thinking about the failure event and being
achievement – opening up new horizons, proactive towards secondary causes of stress.
combining resources in new ways, inspiring
people. The Dark Side of Entrepreneurship
• Entrepreneurial Discipline • The Entrepreneur’s Confrontation with Risk
o The same techniques and principles whether o Financial risk versus profit (return) motive
in a large organization or in a new venture, varies in entrepreneurs’ desire for wealth
business or nonbusiness, government or o Career risk – loss of employment security
NGO. o Family and social risk – competing
commitments of work and family
ENTREPRENEURIAL MINDSET IN INDIVIDUALS o Psychic risk – psychological impact of failure
Entrepreneurial Cognition on the well-being of entrepreneurs
Cognition Social Cognition Entrepreneurial
Theory Cognition Entrepreneurs: Type A Personalities
The mental functions, Posits that knowledge The knowledge
processes (thoughts), structures (mental structures that people • Chronic and severe sense of time urgency
and states of intelligent models of cognitions) use to make • Constant involvement in multiple projects subject to
humans – attention, can be ordered to assessments, deadlines.
remembering, optimize personal judgements, or
producing, and effectiveness within decisions involving
• Neglect of all aspects of life except work.
understanding given situations. opportunity evaluation, • A tendency to take on excessive responsibility,
language, solving venture creation, and combined with the feeling that “Only I am capable of
problems, and making growth.
taking care of this matter.”
decisions.
• Explosiveness of speech and a tendency to speak faster
than most people.
Cognitive vs. Metacognitive Perspective
• Cognitive Adaptability
Stress and the Entrepreneur
o The ability to be dynamic, flexible, and self-
• Entrepreneurial Stress
regulating in one’s cognitions given dynamic
o The extent to which entrepreneurs’ work
and uncertain task environments.
demands and expectations exceed their
• Metacognitive Model
abilities to perform as venture initiators, they
o Describes the higher-order cognitive process
are likely to experience stress.
that results in the entrepreneur framing a task

4
 • Sources of Entrepreneurial Stress
o Loneliness
o Immersion in business
o People problems
o Need to achieve

Dealing with Stress

Types of Morally Questionable Acts

NonRole Acting outside one’s Expense account
(against the firm) role or duties cheating

Embezzlement

The Entrepreneurial Ego Stealing supplies

• Self-Destructive Characteristics Role Failure Failing to perform the Superficial performance
(against the firm) true role of the position appraisal
o Overbearing need for control
o Sense of distrust Failing to promote or hire
o Overriding desire for success the truly qualified
o Unrealistic externalized optimism Role Distribution Misconstrued thinking Bribery
(for the firm) that they are acting in
the best interests of the Price fixing
ENTREPRENEURIAL ETHICS firm
• Ethics Manipulating suppliers
Role Assertion Asserting roles beyond Not withdrawing unsafe
o Provides the basic rules or parameters for
(for the firm) what they should be products
conducting any activity in an “acceptable”
manner. Investing in unethical
o Represents a set of principles prescribing a governments

behavioral code of what is good and right or

bad and wrong. Reasons for Unethical Behaviors Occur
o Defines “situational” moral duty and
obligations.
• Sources of Ethical Dilemmas
o Pressure from inside and outside interests
o Changes in societal values, mores, and norms
• Ethical rationalizations used to justify questionable
conduct involve believing that the activity:
o Is not “really” illegal or immoral.
o Is in the individual’s or the firm’s best interest.
o Will never be found out.
o Helps the firm so the firm will condone it. My Business Decisions are Ethically Complex
• Complexity of Ethical Decisions
• Ethical decisions often have a ripple effect, where the
o Extended consequences
consequences can be felt by others outside the
o Multiple alternatives
organization.
o Mixed outcomes
• Business decisions that involve ethical questions have
o Uncertain ethical consequences
multiple alternatives.
o Personal implications
• Ethical business decisions often have mixed outcomes
– benefits and costs.
• Most business decisions often have uncertain ethical
consequences – a decision is never without ethical risk.
• Most ethical business decisions have personal
implications

Ethics/Dilemmas in E-Commerce
• E-commerce and online purchases continue to redefine
the social norms in commerce.

5
 • Face-to-face interactions are becoming less frequent – management and resources) that will successfully
consumers are doubting the trustworthiness of sustain the flow.
businesses and services available online. • The flow of commodities, i.e. the specific supply chain,
• Consumer reviews have become an indispensable will depend on the type of business.
aspect of e-commerce - creating what is known as
social media reputation management systems.
• Unfortunately, these systems are vulnerable to abuse –
false consumers and false consumer reviews – to drive
sales.
• Enterprises need to implement ethical policies to
remain reputable.

STRATEGIES IN ACHIEVING AN ETHICAL VENTURE

Ethical Codes of • A code of conduct is a statement of ethical
Conduct practices or guidelines to which an enterprise
adheres to Forms of Business Ownership
• Research shows these have become prevalent
Sole Proprietorship A business owned by an individual who also manages
in many industries.
its operations.
• Having one guides employees and managers
Partnerships A business owned by two or more individuals who
to promote and maintain ethical policies and
share both liabilities for and the management of the
practices within the enterprise.
company.
• When designing one, make it comprehensive
Corporations The true or original owners of the company share
and inclusive so that it covers as many ethical
ownership of the entire enterprise with various
issues as possible. Make it easy to implement.
stockholders and may or may not be involved in the
Ethical • Ethical consciousness – the entrepreneur is the
management of the company.
Responsibility key figure to set the tone in the organization.
• Ethical Process and Structure – refer to the
procedures, position statements (codes), and Management
announced ethical goals designed to avoid
The art and science of performing effectively and efficiently, the
ambiguity, e.g., signing affidavits, and reading
codes of conduct. following functions or processes:
• Institutionalization – incorporate the venture’s Planning • Creating the vision, defining the mission, setting
ethical objectives with its economic objectives, goals
e.g., have constant review of procedures and • Developing the specific actions or action plans to
feedback in operation. meet defined goals
• Determining needed resources
Organizing • Creating the functional structure of the firm
CORPORATE ENTREPRENEUR • Creating teams, departments, business units
ORGANIZATIONS & FUNDAMENTALS OF MANAGEMENT • Designing the most effective processes and
A group of people working together towards an agreed purpose, procedures
• Designing the most effective specific work
utilizing different resources (financial, physical, suppliers, etc.) to functions
produce, and then sell or provide either a service or product for Leading • Motivating the people of the organization to
the local (or global) population (i.e. customers) to consume. work towards the vision, mission, and specific
departmental goals of the company
Controlling • Monitoring activities and personnel
Types of Businesses • Auditing whether processes, activities, and
Service Business A business that Professionals, doctors, personnel are performing according to set
provides intangible consultants standards
products, i.e. talent, • Correcting mistakes
skills, knowledge of the Law firms, accounting
service provider. firms, BPOs
Merchandising A business that buys (at Retailers, supermarkets, Core Functional Areas of Management
Business cost) and sells (at a groceries
markup) physical
products. Car dealers, resellers,
distributors
Manufacturing A business that buys Companies that
Business raw materials to manufacture food,
manufacture a physical personal care products,
product and sells it. gadgets, automobiles,
housekeeping
products, etc.

SUPPLY CHAIN
• A supply chain describes the flow of goods (or FUNCTIONAL AREAS OF MANAGEMENT
commodities) and services from its source to the end- Human Resources Management
users (i.e. consumers); and involve the processes that • Recruitment
transform raw materials into final products or services. o Hiring and keeping the best talent (i.e.
• The supply chain affects the different aspects of a manpower)
business and determines the requirements (i.e.

6
 o Credentials management – inventory of
required and available skills and knowledge
• Compensation, benefits, and rewards
• Performance measurement
o Rewards and promotions
• Career development
o Providing needed training
o Continuous education and development
Financial Management
• Capital sourcing and funding
• Revenue and profit generation
• Managing operating costs
• Investments, IPOs, leveraging (i.e. loans)
• Employee compensation and benefits
• Financial statements – assets, cash, liabilities, ROE, ROI
Operations Management
• Production
o Processes and procedures that produce
outputs which bring revenue to the company
o Maximizing production at minimum costs
• Specific work activities and tasks for every position
• Working hours
• Organizational structure
o Departments and divisions
o Positions – rank and file to different levels of
management
Marketing Management
• Market – portion of a population (local or global) that
buys a firm’s products and/or services, a.k.a. customer
base
• Finding and attracting customers
o Market Penetration
o Market Development
o Market & Share Domination
• Customer Relations Management
• Sales Management and Strategies
• Advertising and Promotions
• Public Relations
Typical Organizational Structure for Barge Enterprises
• Also known as Corporate Innovation or
Intrapreneurship.
• Infusion is achieved by tapping and supporting the
innovative talents of an organization’s own workers
and managers.
The Thrust for Corporate Entrepreneurship
• The global economy if profoundly changing
compelling large established enterprises to reexamine
their purpose.
• Earlier research concluded that entrepreneurship and
bureaucracies were mutually exclusive. Today, many
researchers are all about the presence of
entrepreneurial ventures within the enterprise
framework.
• Ideas come from people. Innovation is the capability of
many. That capability is utilized when people give
commitment to the missions and life of the enterprise
and are given the power to do something about their
capabilities. (Steven Brandt)
The Need for Corporate Entrepreneurship and Innovation has
arisen as a result of:
1. In contrast to previous decades, changes, innovations,
and improvements are now very common in the
marketplace. Thus, corporations must either innovate
or become obsolete.
2. Losing the brightest people to independent (or
individual) entrepreneurship. This is due to the
following developments:
a. The status and image of being an
independent entrepreneurship – appealing to
both young and seasoned employees.
b. Venture capital has grown into a large
industry, along with healthy capital funding
markets, enabling more new entrepreneurs to
launch their ideas.
Advantages of Fostering a Corporate Entrepreneurship
Philosophy within an Organization
1. It leads to the development of new products and
services that will help the organization to expand and
grow.
2. It creates a workforce that helps the enterprise
maintain its competitive posture.
3. It promotes a climate conducive to high achievers
which helps the enterprise motivate and keep its best
people.

Resolving the Paradox of Change and Preservation

• At one end of the innovation continuum is stability, or
the absence of innovation; at the other end is chaos, or
overwhelming innovation.
• Too much change will lead to chaos, loss of cultural
glue, fatigue, and organizational breakdown.
• Organizations that are chaotic may survive in the short
CORPORATE ENTREPRENEURSHIP
term but will collapse in the long term.
• Infusion of entrepreneurial thinking into large
bureaucratic structures (i.e. corporations,
organizations).

7
THE 5 CRITICAL STEPS OF A CORPORATE ENTREPRENEURIAL
STRATEGY
1. Developing the Vision
2. Encouraging Innovation
3. Structuring for an Entrepreneurial Climate
4. Preparing Managers for Corporate Innovation
5. Developing Innovation Teams
Developing the Vision
• Define and share the vision – the vision must be
articulated by top management to all employees.
• Facilitate managers and employees to define specific
objectives for their teams or departments that will be
consistent with the articulated vision:
o Strategic Goals by Top Management
o Tactical Goals by Middle Management
o Operational Goals by First Level Management
Encouraging Innovation
• Radical Innovation. The launching of inaugural
breakthroughs such as social networking, mobile
computing, cloud storage, online dating, and green
technologies. Chaotic Innovation
• Incremental Innovation. The systematic evolution of a
product or service into newer or larger markets.
Systematic Innovation. Many times, incremental
innovation will take over after radical innovation
introduces a breakthrough. Examples: computing
(computers), telecommunication, audio entertainment
Important Practices for Establishing Innovation-Driven
Organizations
• Set explicit innovation goals.
o Specific. Measurable. Attainable. Relevant.
Time-based.
• Create an effective feedback and positive
reinforcement system.
• Emphasize individual responsibility.
• Reward innovative ideas.
• Do not punish failures.
o Individuals must feel free to experiment
without the fear of punishment.
Rules for an Innovative Environment
• Encourage action.
• Use informal meetings whenever possible.
• Tolerate failure, and use it as a learning experience.
• Persists in getting an idea to market.
• Reward innovation for innovation’s sake.
• Plan the physical layout of the enterprise to encourage
informal communications.
• Expect clever bootlegging of ideas – secretly working
on new ideas on company time as well as on personal
time.
• Put people on small teams for future-oriented projects.
• Identify and replace rigid procedures and bureaucratic
red tape.
• Reward and promote innovative personnel.
Example Programs that Support Innovation and Venture
Development
• Reduce unnecessary bureaucracy, and encourage
communication across departments and functions.
• Use internal “venture capital” and special project
budgets (“Intracapital”). Allow discretionary time for
projects.
• Encourage joint projects and ventures among divisions,
departments, and companies. Allow and encourage
employees to discuss and brainstorm new ideas.
Structuring the Work Environment
• Management Support
o Quick adoption of employee ideas
o Recognition of people who bring ideas
forward
o Supporting for small experimental projects
o Providing seed money to get projects off the
ground
• Autonomy & Work Discretion
o Organizations should give employees the
freedom to make decisions about their work
processes and avoid criticizing them for
making mistakes when innovating.
• Rewards & Reinforcement
o Organizations should provide rewards
contingent on performance
o Provide exciting challenges
o Increase responsibilities that build self-
confidence
o Make the ideas of innovative people known to
everyone in the organizational hierarchy.
• Time Availability
o Give people the opportunity to incubate
ideas. Moderate workloads, minimize time
constraints on all aspects of a person’s job,
and allow people to work with others on long-
term problem-solving.
• Organizational Boundaries
o People must be encouraged to look at the
organization from a broader perspective.
Innovation thinking can be stifled by SOPs,
narrow job descriptions, and rigid
performance standards.
Key Entrepreneurial Climate Factors
Aspects of a company that should be examined to assess
readiness for a corporate entrepreneurship strategy
Preparing Managers for Corporate Innovation
• The Entrepreneurial Experience
o Participants are introduced to the
entrepreneurial revolution that has taken
place throughout the world in the last three
decades.
• Innovative Thinking
o Managers are engaged in several exercises
designed to facilitate their own innovative
thinking.
8
 • Idea Acceleration Process • If the innovation proves successful, it is integrated into
o Managers are facilitated to examine different the larger organization.
aspects of the organization that affect their
specific work (barriers, helpful aspects, Critical Characteristics of Innovation Teams
resources, etc.).
• Sustaining Innovation Teams
o Managers work together to form terms that
will focus on potentially innovative ideas.
Team dynamics are also reviewed for each
group to understand and successfully
implement.
• The Innovation Action Plan
o Teams will go through the process of
completing an action plan that will involve:
▪ Setting goals
▪ Developing an I-Team
▪ Assessing current conditions
▪ Developing a timetable for project
completion
▪ Project evaluation

Corporate Innovation Training Program (Module)

Questions to Help an Organization Re-examine itself

• Does our company encourage entrepreneurial
thinking?
• Does our company provide ways for innovators to stay
with their ideas?
• Are people in our company permitted to do the job in
their own ways, or are they constantly stopping to
explain their actions and ask for permission?
• Has our company developed quick and informal ways
to access the resources to try new ideas?
• Has our company developed ways to manage many
small and experimental innovations?
• Is our system set up to encourage risk-taking and
tolerate mistakes?
• Are people in our company more concerned with new
ideas or with defending their funds?
• Is it easy in our corporate environment to form
functionally complete, autonomous teams?

Developing Innovative Teams

• They are self-directing, self-managing, and high-
performing. Its focus is on design issues (i.e. structure
and process) for innovative activities.
• Composed of two or more people, led by an Innovation
Champion or Corporate Entrepreneur.
• They learn about each other and learn how to help each
other perform better so that the collective capacity of
the team effectively helps the company improve.
Collective Entrepreneurship.
• The team is like a small business operating within a
larger business, it has its own budget and is semi-
autonomous.
• The team is separate from other parts of the firm in the
sense that it does not engage in procedures that may
stifle innovative activities.